Financial information relating to the most recent trading period and two orders recently received are provided below:

Overhead costs:

Ordering Costs 7,200

Design expenses 28,500

Artwork 17,250

Despatch costs 10,800

Activity drivers:

Total orders received 48,000

Total design consultation emails 356,250

Total artwork setups 115,000

Total packets despatched 90,000

Total machine hours 21,250

Details of two orders received

Order reference Notebook KJ34 Diary XT501

Direct materials paper, binding, etc. 1.86 1.24

Direct labour 0.52 0.68

Machine hours required 0.20 0.30

Number of design consultations 3 5

Number of artwork setups required 4 8

Calculate the cost of each of the orders received using:

(i)The existing overhead allocation method.

Comment briefly on your answers